Chinese Yuan has slowly dropped against US dollar over last month. November's PBoC FX reserve data indicates active intervention to smooth out CNY depreciation pressures.
This depreciation bias is expected to persist in near term. Latest economic data, including PMI surveys, are somewhat disappointing, while the equity markets look vulnerable.
"This suggests that policymakers may need to ease monetary policy further to support growth. Looser monetary policy, alongside recent changes to the CNY fixing methodology, also leave the CNY more vulnerable to Fed tightening than in the past", says Lloyds Bank in a research note.
The IMF announcement this month that the CNY would be included in the SDR basket next year has sparked rumours of another imminent widening in the permissible trading band of the CNY versus the USD.


Bank of Japan's Ueda Flags Low Real Interest Rates as Key Factor in Rate Hike Timing
Japan Inflation Expectations Rise as BOJ Rate Hike Timing Faces Uncertainty
Singapore Tightens Monetary Policy Amid Middle East War Inflation Risks
Bank of Japan Faces Rate Uncertainty Amid Middle East Oil Shock
Australia Bans Card Payment Surcharges Starting October 2025
Morgan Stanley: Fed Rate Cuts Still on Track Despite Oil-Driven Inflation
Bank of America Maintains Forecast for Two Fed Rate Cuts in 2026 Despite Inflation Risks




